Mumbai: Foreign portfolio investors (FPIs) have turned sellers in Indian markets. As per market experts, the volatility due to elections and the hawkish stance from global central banks has led to subdued activity in the domestic stock market this month.
According to data released by the National Securities Depository Ltd (NSDL), FPIs sold Rs 28,242 crore worth of Indian equities and the total outflow stands at Rs 27,082 crore as of May 17, taking into account debt, hybrid, debt-VRR, and equities. The total debt inflows stand at Rs 178 crore so far this month.
FPIs offloaded Rs 8,671 crore in Indian equities last month and Rs 10,949 crore in debt markets over high US bond yields. However, they invested Rs 35,098 crore in Indian equities during March 2024. This was the highest inflows recorded in the first three months of 2024.
The inflow into Indian equities stood at Rs 1,539 crore in February 2024 and the debt market investment rose to Rs 22,419 crore during the month on top of the Rs 19,836 crore bought in January.
Meanwhile, Foreign Portfolio Investors (FPIs) have made a net investment of around Rs 2.08 lakh crore in the Indian equity markets and Rs 1.2 lakh crore in the debt market in 2023-24 fiscal year. Collectively, they infused Rs 3.4 lakh crore into the Indian capital market.
In 2022-23, Indian equities witnessed a net outflow of Rs 37,632 crore by FPIs. Before this, FPIs pulled out a massive Rs 1.4 lakh crore. In 2020-2021, FPIs made a record investment of Rs 2.74 lakh crore.
Also Read: Suzuki launches Jimny Heritage Edition: Details
For the entire calendar year 2023, FPIs bought Rs 1.71 lakh crore in Indian equities and the total inflow stands at Rs 2.37 lakh crore taking into account debt, hybrid, debt-VRR, and equities. FPIs’ net investment in Indian debt market stands at Rs 68,663 crore during 2023.
Indian equities witnessed a net outflow of Rs 1.21 lakh crore by FPIs in 2022. Before the outflow, FPIs invested money in the last three years. FPIs made a net infusion of Rs 25,752 crore in equities in 2021, Rs 1.7 lakh crore in 2020, and Rs 1.01 lakh crore in 2019. FPIs took out funds worth Rs 15,910 crore in 2022, Rs 10,359 crore in 2021, and Rs 1.05 lakh crore in 2020 from debt markets.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
Post Your Comments